Amazon India has started charging a ₹5 marketplace fee on all orders, including those of Prime members. The fee, which is inclusive of all taxes, was announced in a blog post on May 19. According to Amazon, this fee helps support reliable doorstep delivery and access to a wide range of products from a wide range of sellers.
The fee applies to most orders, but is waived for certain items and services. This includes digital and physical gift cards, Amazon Business (B2B), Amazon Now, Amazon Fresh, digital payments such as mobile recharges, bill payments, and ticket bookings. For prepaid or cash-on-delivery orders, the fee will not be charged as a separate charge if any other processing fee has already been applied.
Amazon’s move follows similar moves by other companies. Flipkart has imposed a fee of ₹3 for regular orders and ₹5 for its quick delivery service Flipkart Minutes. Food delivery apps like Zomato and Swiggy have also increased their platform fees. Zomato increased it from ₹2 in 2023 to ₹10 now, while Swiggy's rates are similar. These companies also add additional charges like long-distance delivery fees and festive handling fees.
Many users are unhappy with the increase in additional charges on online orders. The All India Consumer Products Distributors Federation (AICPDF) has filed a complaint with the Competition Commission of India (CCI), alleging that these companies are charging unfair prices and trying to dominate the market.